BURLINGTON, ON, May 13, 2024
/CNW/ - EcoSynthetix Inc. (TSX: ECO) ("EcoSynthetix" or the
"Company"), a renewable chemicals company that produces a
portfolio of commercially proven bio-based products, announced
today that it intends to make a normal course issuer bid (the
"Bid") to repurchase, on the open market through the facilities of
the Toronto Stock Exchange ("TSX"), other designated exchanges
and/or alternative Canadian trading systems or by such other means
as may be permitted by applicable Canadian securities laws, certain
of its outstanding common shares ("Shares").
The number of Shares to be purchased during the period of the
Bid from May 15, 2024 to
May 14, 2025 will not exceed 4,008,032 Shares,
being approximately 10% of the outstanding Shares as of
May 1, 2024, other than the Shares
held by directors, senior officers and principal security holders
(the "Public Float"). The actual number of Shares which may be
purchased pursuant to the Bid and the timing of any such purchases
will be determined by the management of EcoSynthetix. As at
May 1, 2024 there were
58,485,644 Shares issued and outstanding and the Public Float
consisted of 40,080,322 Shares. The average daily trading
volume of the Shares on the TSX (the "ADTV") for the most recently
completed six month period was 74,058 Shares. Pursuant to the
terms of the Bid, EcoSynthetix will not acquire on any given
trading day more than 25% of the ADTV for the most recently
completed six-month period, being 18,514 Shares, other than
block purchase exceptions. All purchases made pursuant to the Bid
will be made on the open market through the facilities of the TSX,
other designated exchanges and/or alternative Canadian trading
systems or by such other means as may be permitted by applicable
Canadian securities laws and EcoSynthetix will cancel any such
Shares purchased pursuant to the Bid. The price that the Company
will pay for Shares in open market transactions will be the market
price at the time of purchase.
The Bid has been authorized by the Board of Directors of
EcoSynthetix to allow EcoSynthetix to purchase Shares if in the
opinion of management the purchases can be made on terms which will
enhance the value of the remaining outstanding Shares.
EcoSynthetix is undertaking the Bid because it believes that the
market may undervalue the Shares of EcoSynthetix from time to time
and that the Shares may trade in a price range which may not
adequately reflect the value of the Shares in relation to the
business, assets and future prospects of EcoSynthetix from time to
time.
Pursuant to the previous notice of intention to conduct a normal
course issuer bid, under which the Company sought and received
approval from the TSX to purchase up to 3,867,436 Shares,
1,045,900 Shares were purchased for the period from
May 13, 2023 to May 1, 2024. Such Shares were purchased in open
market transactions at the market price of the Shares at the time
of acquisition. The volume weighted average price paid for such
Shares was $3.60 per Share.
In connection with the Bid, the Company also announced that it
has implemented an automatic securities purchase plan (the
"Automatic Repurchase Plan") with its designated broker in order to
facilitate the purchases of its Shares under the Bid. Under the
Automatic Repurchase Plan, the Company's designated broker may
purchase Shares pursuant to the NCIB at times when the Company
ordinarily would not be active in the market due to regulatory
restrictions or self-imposed blackout periods. Purchases made
pursuant to the Automatic Repurchase Plan, if any, will be made by
the Company's designated broker based upon the parameters
prescribed by the TSX, applicable Canadian securities laws and the
terms of the written agreement between the Company and its
designated broker. The Automatic Repurchase Plan constitutes an
"automatic plan" for the purposes of applicable Canadian securities
legislation and has been pre-cleared by the TSX.
The Automatic Repurchase Plan will be effective as of
May 15, 2024.
About EcoSynthetix Inc.
(www.ecosynthetix.com)
EcoSynthetix offers a range of
sustainable engineered biopolymers that allow customers to reduce
their use of harmful materials, such as formaldehyde and
styrene-based chemicals. The Company's flagship products,
DuraBind™, Surflock™, Bioform™ and EcoSphere®, are used
to manufacture wood composites, personal care, paper, tissue and
packaging products, and enable performance improvements, economic
benefits and carbon footprint reduction. The Company is publicly
traded on the Toronto Stock Exchange (T:ECO).
Forward-Looking Statements
Certain statements in
this press release constitute "forward-looking" statements that
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance, objectives or
achievements of the Company, or industry results, to be materially
different from any future results, performance, objectives or
achievements expressed or implied by such forward looking
statements. The forward-looking statements in this press release
include, but are not limited to, statements regarding the number of
Shares to be purchased under the Bid, if any, the price to be paid
by the Company for any Shares purchased under the Bid, if any, and
the timing of any such purchases. These statements reflect our
current views regarding future events and operating performance,
are based on information currently available to us, and speak only
as of the date of this press release. These forward-looking
statements involve a number of risks, uncertainties and assumptions
and should not be read as guarantees of future performance or
results, and will not necessarily be accurate indications of
whether or not such performance or results will be achieved. Those
assumptions and risks include, but are not limited to, the
Company's ability to successfully allocate capital as needed and to
develop new products, as well as the fact that our results of
operations and business outlook are subject to significant risk,
volatility and uncertainty. Many factors could cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements, including
the factors identified in the "Risk Factors" section of the
Company's Annual Information Form dated February 27, 2024. Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described in this press
release as intended, planned, anticipated, believed, estimated or
expected. Unless required by applicable securities law, we do not
intend and do not assume any obligation to update these
forward-looking statements.
SOURCE EcoSynthetix Inc.